FX.co ★ Zinc Trades Near 1-Year Low

Zinc futures hovered near the $2,630 per tonne range, retaining much of their declines since plunging to a one-year low of $2,560 earlier in April. This downturn was driven by a somber outlook for global manufacturing and easing supply concerns. Recent tariff escalations saw China imposing levies at 125% on the US, concurrently adding several companies to its export-restriction list. Meanwhile, the US responded with a tariff hike to 145% and warned of further barriers on specific metals, dimming manufacturing prospects for leading economies. Additionally, President Trump’s stringent steel tariffs resulted in a spike in coil prices, primarily due to constrained domestic capacity, thus negatively impacting zinc demand in galvanization. On the supply side, there is speculation of a rebound in mining demand within the year, propelled by increased capacity in Russia and the Democratic Republic of Congo. This anticipated surge has led to an international rise in treatment charges, following a period where Chinese smelters faced negative treatment charges at the close of 2024.